Days are longer. The weather is warmer. And people want to buy!
In the real estate world, we call this time of year ‘Spring Market.’ It’s one of the busiest times of the year for buyers and sellers alike. While there’s a lot of excitement around spring home buying, it can also lead to a lot of unnecessary stress if you’re not prepared.
Coming from 18+ years of experience in the banking and mortgage industry in the Edmonton area, these are my top tips if you want to buy a home this spring.
#1. Talk To Me
Seriously, this is the number one thing to do if you’re looking to buy a home in Edmonton or the surrounding area this spring; talk to a mortgage broker!
Right now, the market is moving incredibly fast. Ideal properties in Edmonton neighbourhoods that homes don’t often come up for sale or great foreclosures deals are moving super quick.
You want to have everything prepared when you find that house you want to buy. The last thing you want to be doing is spending hours digging through paperwork while competing against multiple offers.
Also, lenders love when you have a complete mortgage application with all the necessary documents and information. The less time they have to spend verifying documents and information, the better!
#2. Have Your 2019 Taxes Done
2019 feels like forever ago, especially after this year. And in the mix of the 2020 craziness, taxes were the last thing on many people’s minds.
However, before you go to buy a house, make sure your 2019 taxes are filed and paid. And I’m not talking about partially or in a payment program. You have to have your 2019 taxes paid fully if you want to buy a house.
I recently worked on a file where the clients filed their 2019 taxes AFTER starting their application. The result? They were hit with a huge tax bill. Luckily, they were prepared to pay it so we could proceed with the file.
However, if you’re in a situation where you’re not prepared to pay a large tax bill, this is going to affect your mortgage application, potentially even being denied by the lender after you’re pre-approved.
We’re in a good spot right now because we can still use 2018 and 2019 tax statements on your application. However, we can only do this for the next few weeks, so get your taxes done sooner rather than later if you want to buy a home this spring!
#3. Don’t Be Overlimit On Your Credit Card
I know this can be a hard one to manage…we don’t need to talk about how difficult 2020 was!
However, if you want to buy a home this spring, don’t be over limit on your credit cards.
Ideally, we like to see your credit card balances at or between 25%-30% of the total credit limit. However, there I’ve seen a few files with credit cards that are $20 away from the limit. Each time that interest charge comes in, you’re now over limit.
It’s a hard spot to be in—trust me, we’ve all been there. The best thing you can do in this situation is to have those automatic payments set up. Make the minimum payment each month, on time, to increase and/or maintain your credit score.
Feeling Lost In the Spring Market?
When in doubt, call me!
Not only have I helped thousands of people with their mortgages in Edmonton and the surrounding areas. I want to make your home buying experience as simple, and fun as possible!
If you’re looking for more tips to get into a new home this spring, please give me a call. I’d love to help.